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Famous Dave's Announces Q1 Results in Line with Expectations; Reaffirms Outlook for Fiscal Year

April 17, 2002 at 4:18 PM EDT
MINNEAPOLIS, Apr 17, 2002 (BUSINESS WIRE) -- Famous Dave's of America, Inc. (Nasdaq:DAVE) reported 1st Quarter revenues and earnings that were in line with previously issued guidance. Revenues were $21.2 million for the quarter with net income of $809,000, or $0.07 per share. 1st quarter earnings included gains from the sale of the Company's three Wisconsin restaurants to a new franchise group. Excluding these gains, net income would have been $0.03 per share.

For the 1st quarter of 2001, the Company had reported un-taxed net income of $395,000 or $0.04 per share. Had these earnings been reported taxed, earnings per share would have $0.02 in the prior year.

The Company also announced that two new franchised restaurants opened during the quarter, one each in Bellevue, Nebraska and Mountainside, New Jersey. With the sale of the three Wisconsin restaurants, the quarter-end totals were 34 company operated and 24 franchise operated restaurants. Area Development Agreements are in place for an additional 61 franchise restaurants.

Also included in the Company's results is a loss of ($428,000) from its investment in an unconsolidated subsidiary. The unconsolidated subsidiary owns and operates two entertainment clubs, one each in Chicago and Memphis, under the brand "Isaac Hayes Food Music Passion." Famous Dave's had contributed its blues club in Chicago into the venture, which subsequently opened the new club in Memphis.

"We are pleased with our profit results for the quarter." stated Martin O'Dowd, President and CEO. "We were successful in increasing restaurant operating margins by 70 basis points, overcoming an expected increase in some commodity costs. The outlook for the balance of the year is strong and we remain focused on the execution of our strategic plan."

Looking forward, the Company anticipates that it will open three new company operated restaurants during the 2nd quarter of 2002, with a target of eight to ten for the year. In addition, three new franchise restaurants are expected to open during the 2nd quarter for a total of 12-15 new franchise restaurants for the year. The Company anticipates 2nd quarter revenues between $24 and $25 million with earnings per share of $0.08 to $0.09.

The Company reaffirmed its full year estimates as it expects to achieve revenues between $97 million and $102 million for fiscal 2002 with earnings per share from $0.27 to $0.30 per share.

FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS
For the Quarters Ended 3/31/02 and 4/1/01
(in thousands, except per share data)
Quarter Ended                                      3/31/02      4/1/01
                                                   -------      ------
Revenues                                           $21,206     $20,469
Costs and expenses:
  Food and beverage costs                            6,681       6,446
  Labor and benefits                                 5,797       5,737
  Operating expenses                                 4,602       4,811
  Depreciation and amortization                      1,130       1,083
  Pre-opening expenses                                   0         293
  General and administrative                         1,770       1,451
                                                    ------      ------
Total costs and expenses                            19,980      19,821
                                                    ------      ------
Income from operations                               1,226         648
Other income (expense):
  Interest income                                       70          5
  Interest expense                                   (390)       (341)
  Gain on Sale of Assets                               801          95
  Other income (expense)                                40        (11)
  Equity in loss from unconsolidated affiliate       (428)           0
                                                    ------      ------
Total other income (expense)                           93        (252)
                                                    ------      ------
Income before taxes                                 $1,319        $396
Taxes
  Income tax (expense)                               (510)           0
                                                    ------      ------
Net income                                            $809        $396
                                                    ======      ======
Basic net income per common share                    $0.07      $0.04
Diluted net income per common share                  $0.07      $0.04
Weighted average common shares outstanding -
 basic                                          11,219,734   9,463,897
Weighted average common shares outstanding -
 diluted                                        11,931,342  10,229,898
Unit-Level Costs And Expenses as % Sales: Quarter Ended 3/31/02 4/1/01
                                                        ------- ------
                                                          32.6%  32.0%
   Food and beverage costs                                28.3%  28.5%
   Labor and benefits                                     22.4%  23.9%
   Operating expenses                                      5.5%   5.1%
   Depreciation and amortization                           ----   ----
                                                          88.8%  89.5%
   Total costs and expenses                               11.2%  10.5%
   Income from unit-level operations                      =====  =====
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As March 31, 2002 and December 30, 2001
(in thousands, except per share data)
ASSETS                                               3/31/02  12/30/01
                                                     -------  --------
Current assets                                       $14,825  $12,015
Property, equipment and leasehold improvements, net   45,419   46,940
Other assets                                          11,276   11,485
                                                      ------   ------
Total Assets                                         $71,520  $70,440
                                                     =======  =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                                   $7,013   $7,309
Long-term obligations                                 16,320   16,442
Shareholders' equity                                  48,187   46,689
                                                     ------   -------
Total Liabilities and Shareholders' Equity           $71,520  $70,440
                                                     =======  =======
Famous Dave's of America, Inc. (Nasdaq:DAVE) owns, operates and franchises barbeque restaurants. The company currently owns 34 locations and franchises an additional 24 units in Alabama, Georgia, Illinois, Indiana, Iowa, Maryland, Minnesota, Nebraska, New Jersey, Ohio, South Dakota, Tennessee, Utah, Virginia and Wisconsin and has signed development agreements for an additional 61franchised locations. Its menu features award-winning barbecued and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.

Certain matters discussed within this press release, including statements regarding revenue and profit forecasts, new restaurant sites, restaurant openings and expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Famous Dave's of America, Inc. believes the expectation reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from Famous Dave's expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, changes in local or national economic conditions, availability of financing and other risks detailed from time to time in the company's SEC reports.

CONTACT:          Famous Dave's of America, Inc., Minneapolis
                  Ken Stanecki, 952/294-1300

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